Tax cicular on 'Project private PC'

The contribution an employer makes towards what an employee pays for a computer and/or related material can be exempted from tax under certain conditions and within certain limits.

Since 1 January 2009, a new exemption scheme has applied in such situations and the tax authorities have now published a circular on this subject (circular of 11 July 2011).

We should remind you that this scheme is aimed at employees whose annual taxable remuneration does not exceed 21.600 EUR (not indexed amount) or 30.540 EUR for the 2012 tax year.

To benefit from the exemption, the employee must at least buy a new PC (basic condition). This purchase may be completed with peripheral equipment, internet connection and an internet subscription.

The exemption related to the purchase of a PC or of peripheral equipment is only granted once per three taxable periods. This restriction does not apply to the contribution to the internet connection or the internet subscription.

The exemption is per taxable period limited to 550 EUR (not indexed amount) or to 780 EUR for the 2012 tax year.

The new scheme is simplified: the employer is no longer obliged to prepare an organized plan; it is sufficient that the employees are informed that the employer is prepared to contribute to the purchase of computer material.